Bracco, Emanuele; Lockwood, Ben; Porcelli, Francesco; … - In: Journal of Public Economics 123 (2015) C, pp. 78-91
This paper provides a simple political agency model to explain the effect of political alignment between different tiers of government on intergovernmental grants and election outcomes. Key features of the model are: (i) rational voters interpret public good provision as a signal of incumbent...